The Federal Government has issued a stern warning to oil and gas producers: begin production or surrender your operating licenses.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is set to enforce the “drill or drop” policy, in a move aimed at reviving the country’s oil sector and boosting national revenue.

Speaking during a meeting with the Independent Petroleum Producers Group (IPPG) in Abuja, NUPRC Chief Executive Gbenga Komolafe stated, “The implementation of the ‘drill or drop’ policy requires operators to either begin production within a specified timeframe or relinquish their licenses. This policy aims to revitalise the oil sector, ensure optimal use of assets, and boost government revenue.”

Komolafe emphasized the commission’s ongoing commitment to creating a business-friendly environment. He highlighted improvements brought by the Petroleum Industry Act, such as the automation of licensing and permit processes, which have reduced red tape and increased efficiency across the sector.

The IPPG delegation was led by its Chairman, Abdulrazaq Isa, who also chairs the Waltersmith Group. Isa described the visit as a strategic move to deepen collaboration with the commission and praised NUPRC’s role in facilitating recent asset divestments by international oil companies.

“These divestments, which were closely overseen by the commission, have enabled a significant transfer of upstream oil and gas assets to indigenous operators,” Isa said. “This transition marks a pivotal shift in Nigeria’s energy landscape, creating new opportunities for local companies to scale up operations.”

The IPPG also reaffirmed its support for the commission’s “Project One Million Barrels Incremental” initiative, which aims to significantly raise Nigeria’s daily crude oil output. The group stressed its dual focus on both oil and gas development in alignment with national energy goals.